BofA CEO Brian Moynihan: “Now, the answer is, we just retain the mortgages and frankly the credit quality on ours is not worth paying the insurance [associated with selling loans into MBS].”
Not counting the new investment from Gatehouse, CALPCAP has raised $225 million from investors since its inception 10 years ago. Company principal Mark Mozilo told IMFnews the firm is continuing to hire as it builds out a national lending platform.
“The research will inform the CFPB and assist it in developing recommendations to streamline and improve the rules governing the mortgage industry and, more specifically, the ATR/QM rule,” said the CMC.
The secondary market in mortgage servicing rights heated up during the second quarter of 2017, fueling further growth by nonbanks in the servicing business. An estimated $133.36 billion of MSR changed hands during the second quarter, according to an analysis by Inside Mortgage Trends, an affiliated newsletter. That was up 21.5 percent from the first three months of the year, and brought total MSR transfers to $243.14 billion at the midway point of 2017, up 53.6 percent from a year ago. Most of the activity has been...[Includes three data tables]
Firms that sell mortgage servicing rights for a living are conducting more privately negotiated transactions these days, reserving the auction process for smaller deals, according to interviews with industry dealmakers. “We’ve seen a good amount of these lately,” said Steve Harris, managing director of MIAC Capital Markets, New York. “Word gets out who the buyers are; the sellers find out and they decide to do a privately negotiated deal. And there are companies out there with substantial portfolios [that are available for sale].” One selling firm that reportedly went the private route after trying an auction is...
Mortgage-investing real estate investment trusts are having a field day this year, selling additional common stock – and even preferred – to the public, while nonbank lender/servicers continue to be locked out of the market. And given the fact that origination volumes could wind up 20 percent lower this year than in 2016, it’s unlikely that investors will give nonbanks much of a chance unless they can prove themselves as “disruptors” with a “fintech” bent to their operating strategy. But that isn’t...
For years, big banks have delivered nearly all of their conforming mortgage production to the government-sponsored enterprises and retained their jumbo mortgages in portfolio. But some big banks have changed tactics, exploring differing execution options for their originations. Paul Donofrio, CFO of Bank of America, said the bank retained about 90.0 percent of its mortgage production on balance sheet in the second quarter of 2017. BofA had $18.0 billion in originations during the quarter, including first mortgages and home-equity loans. The loans retained...
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